BRS is prepared to explain the difference between the Bank balance as per our Books and the balance in the books of bank. Ideally speaking in real practice the difference between the bank balance between the two books is because of the following two: Chequess deposited in the bank but not cleared by bank. Rest all of the entries such as Bank Charges, direct debits/credits,dividend received etc are being entered in the books of the organization once the Bank Statement is received from the Bank.